CASH FLOW INFORMATION

12 Months Ended

Oct. 31, 2014

CASH FLOW INFORMATION

CASH FLOW INFORMATION

6. CASH FLOW INFORMATION

For purposes of the statement of consolidated cash flows, the company considers investments with purchased maturities of three months or less to be cash equivalents. Substantially all of the company’s short-term borrowings, excluding the current maturities of long-term borrowings, mature or may require payment within three months or less.

The equipment operations sell a significant portion of their trade receivables to financial services. These intercompany cash flows are eliminated in the consolidated cash flows.

All cash flows from the changes in trade accounts and notes receivable (see Note 12) are classified as operating activities in the statement of consolidated cash flows as these receivables arise from sales to the company’s customers. Cash flows from financing receivables that are related to sales to the company’s customers (see Note 12) are also included in operating activities. The remaining financing receivables are related to the financing of equipment sold by independent dealers and are included in investing activities.

The company had the following non-cash operating and investing activities that were not included in the statement of consolidated cash flows. The company transferred inventory to equipment on operating leases of $794 million, $659 million and $563 million in 2014, 2013 and 2012, respectively. The company also had accounts payable related to purchases of property and equipment of $128 million, $198 million and $185 million at October 31, 2014, 2013 and 2012, respectively.

Cash payments for interest and income taxes consisted of the following in millions of dollars:

	2014		2013		2012
Interest:
Equipment operations	$	506	$	511	$	420
Financial services	454		502		638
Intercompany eliminations	(268)		(247)		(248)
Consolidated	$	692	$	766	$	810
Income taxes:
Equipment operations	$	1,640	$	1,863	$	1,704
Financial services	333		270		207
Intercompany eliminations	(253)		(179)		(167)
Consolidated	$	1,720	$	1,954	$	1,744